Blog: Dave LeggettUS supplier sector crisis

Dave Leggett | 12 March 2009

The financial crisis hitting the North American supplier industry is a big worry right now. Some large companies as well as many SMEs are suffering as vehicle production schedules are slashed.

Just how bad are things? Well, if Toyota in the US is voicing serious concern about the financial health of its supplier base, that says something.

It also adds weight to the view that interdependencies in the US supplier sector mean that there is a common interest in the US auto industry seeing orderly restructuring rather than the chaos that could follow a major OEM failure that decimates suppliers. If a 'prepackaged' Ch.11 is seriously on the table, the consequences needs to be thought through with attention in particular paid to the likely impact on the supplier sector and any safeguards that need to be in place there.

US: Toyota warns Obama TF of looming supplier crisis


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